Which of the following is a disadvantage of using a percentage-of-sales method to determine the marketing communications budget?
A) It assumes competitors know better than the company's own planners.
B) It results in high communication expenditures irrespective of what the company can afford.
C) It is overly focused on the relationship among communication cost, selling price, and profit per unit.
D) It treats sales as what determines communication, rather than as the result of effective communication.
E) It is too focused on long-range planning.
D
You might also like to view...
In which of the following instances should a project manager use an iterative approach for a project?
A. The problem the project is solving is not fully defined. B. The phases need to be managed in a specific sequence. C. The project manager needs to focus on planning a project. D. The requirements are not expected to change as the project progresses.
The following information relates to Leonard Manufacturing's overhead costs for the month
Static budget variable overhead $14,200 Static budget fixed overhead $5,600 Static budget direct labor hours 1,000 hours Static budget number of units 5,000 units Leonard allocates manufacturing overhead to production based on standard direct labor hours. Leonard reported the following actual results for last month: actual variable overhead, $14,500; actual fixed overhead, $5,400; actual production of 4,700 units at 0.22 direct labor hours per unit. The standard direct labor time is 0.20 direct labor hours per unit. Compute the fixed overhead cost variance. What will be an ideal response